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, but by the exit of "old sellers" (Old Shorts).
How does this happen? When big speculators bet on gold falling from the top, they open short positions (Short Positions). To profit after the collapse, they must mechanically "buy" their contracts to close the trade.
Summary: This buy is an "emergency" profit-taking buy, not an "investment" buy to build new positions. Once they finish taking profits, the buy demand disappears, and the price resumes its decline to continue the trend.
The more dangerous reason for continued pressure is the decision by the "CME Group" (Largest Futures Exchange) to raise margin requirements:
Action: Margin on gold was increased from 6% to 8%, and on silver from 11% to 15%.
Scientific explanation: This means the "cost of holding the position" has increased. Liquidity that was previously lifting the market (via leverage) has been withdrawn.
Result: This move forces over-leveraged funds to "delever" (Deleveraging) to reduce risk, creating a price ceiling that prevents any strong upward movement in the near term. The market is now going through a "margin compression" (Margin Compression) phase.
#BuyTheDipOrWaitNow?
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